Audi is developing a small sports car called the R4 to challenge the Porsche Boxster, company sources say.

By directly taking on the Stuttgart sports car maker, Audi will invade the territory owned by Porsche, which now has a near-controlling interest in the Volkswagen group, Audi's parent company.

If launched, the R4 would test the new ownership structure at VW, which has some Audi executives nervous.

At the Detroit auto show last month, one high-ranking Audi official said executives are "concerned about how far [Audi] can go" in competing with Porsche.

Porsche has spent more than �4 billion so far buying shares in VW group and recently increased its stake to 27.4 percent, which makes Porsche the largest VW shareholder.

The executive cited the R8, Audi's new supercar, as a current example of Audi pushing into Porsche territory.

Club Ferdinand, For Porsche-Loving Southerners

Another car club has been announced. This one, Club Ferdinand in Valle Crucis, North Carolina is for Porsche lovers. The entire stable of cars available to members are new Porsches, no vintage classics here. Memberships start at $3,900 a year (plus a one-time initiation fee of $2,900) for the club which is a fleet-sharing club rather than a fractional ownership system. The fleet includes the Porsche 911 Turbo S 996, Porsche Cayenne Turbo S and Porsche Boxster S. The club is also associated with the The Mast Farm Touring Club which is near The Mast Farm Inn and provides a variety of services including visitor information, a multimedia lending library that includes written, audio and audio-visual documentation on the region, a boutique of local crafts, concierge travel services and even special made-to-order picnic baskets.

2008 Audi TT Coupe and Roadster Pricing Announced

Audi of North America has announced pricing for the all-new, second generation TT coupe and roadster. Before adding a $720 destination charge, the cheapest model-the TT 2.0T coupe-will start at $34,800. That's $1600 less than BMW's cheapest two-seater, the Z4 3.0i roadster, and $10,800 less than a base Porsche Boxster. A TT roadster with the same powertrain will start at $36,800. For those craving a few more thrills, a 3.2-liter model with Quattro all-wheel-drive will be available, with the coupe starting at $41,500 and the roadster at $44,500. While the base engine cars come standard with Audi's S-tronic DSG transmission, the 3.2 comes with a 6-speed manual. S-tronic will cost an extra $1400 on the more powerful cars. .

Spy Shots: 2008 Porsche Boxster

Porsche may be the most disciplined automaker on the planet. For decades, their vehicles have slowly evolved, with subtle styling changes and incremental boosts in power. The 2008 Boxster appears to carry on that tradition quite nicely. Styling modifications have been minimal, with updates to the front fascia and LED headlamps. The front air intakes are now more rounded, making it look less like a squished Cayenne. Out back the bumper is updated and LED lighting fills the tail lamps. No word as of yet with regards to powertrain or interior updates. We can, however, assume that the new Boxter will drive like a gem, make heads turn, and keep many from attaining a blemish-free driving record.